upon all parties designated in said notice. Twenty days will be allowed in which to file a reply by any party who filed an original memorandum.

§ 158.4 Form and style.

All memoranda must conform to the requirements of § 1.15 of this chapter, and each copy must be complete in itself. All pertinent data should be set forth fully, and each memorandum should set out the facts and argument as prescribed for briefs in § 1.29 of this chapter.

§ 158.5 Verification.

The facts stated in the memorandum must be sworn to by persons which having knowledge thereof, latter fact must affirmatively appear in the affidavit. Except under unusual circumstances, such persons should be those who would appear as witnesses if hearing were had to testify as to the facts stated in the memorandum.

§ 158.6 Determination.

If no formal hearing is had the matter in issue will be determined by the Commission on the basis of the facts and arguments submitted.

§ 158.7 Assignment for oral hearing.

In case consent to the shortened procedure is not given, or if at any stage of the proceeding prior to the submission of the case to the Commission any party in interest requests a hearing, the proceeding will be assigned for hearing as provided for by § 1.20 of this chapter. The Commission may also in its discretion set the proceeding for hearing on its own motion at any stage thereof.

§ 158.8 Burden of proof.

The burden of proof to justify every accounting entry shall be on the person making, authorizing, or requiring such entry.

CERTIFICATION OF COMPLIANCE WITH ACCOUNTING REGULATIONS

§ 158.10 Examination of accounts.

(a) All Class A and Class B natural gas companies shall secure for the year 1968 and each year thereafter

until December 31, 1975, the services of an independent certified public accountant, or independent licensed public accountant, certified or licensed by a regulatory authority of a State or other political subdivision of the United States, to test compliance in all material respects of those schedules as are indicated in the General Instructions set out in the Annual Report, Form No. 2, with the Commission's applicable Uniform System of Accounts and published accounting releases. The Commission expects that identification of questionable matters by the independent accountant will facilitate their early resolution and that the independent accountant will seek advisory rulings by the Commission on such items. This examination shall be deemed supplementary to periodic Commission examinations of compli

ance.

(b) Beginning January 1, 1976, and each year thereafter, only independent certified public accountants, or independent licensed public accountants who were licensed on or before December 31, 1970, will be authorized to conduct annual audits and to certify to compliance in all material respects, of those schedules as are indicated in the General Instructions set out in the Annual Report, Form No. 2, with the Commission's applicable Uniform System of Accounts, published accounting releases and all other regulatory matters.

(Sec. 10, 52 Stat. 826; 15 U.S.C. 717i)
[Order 462, 37 FR 26006, Dec. 7, 1972]

§ 158.11 Report of certification.

Each Class A or B natural gas company shall file with the Commission a letter or report of the independent accountant certifying approval, together with or within 30 days after the filing of the Annual Report, Form No. 2, covering the subjects and in the form prescribed in the General Instructions of the Annual Report. The letter or report shall also set forth which, if any, of the examined schedules do not conform to the Commission's requirements and shall describe the discrepancies that exist. The Commission shall not be bound by a certification of compliance made by an independent

accountant pursuant to this paragraph.

(Sec. 10, 52 Stat. 826; 15 U.S.C. 717i) [Order 356, 33 FR 143, Jan. 5, 1968]

§ 158.12 Qualifications of accountants.

The Commission will not recognize any certified public accountant or public accountant through December 31, 1975, who is not in fact independent. Beginning January 1, 1976, and each year thereafter, the Commission will recognize only independent certified public accountants, or independent licensed public accountants who were licensed on or before December 31, 1970, who are in fact independent. For example, an accountant will not be considered independent with respect to any person or any of its parents or subsidiaries in who he has, or had during the period of report, any direct financial interest. The Commission will determine the fact of independence by considering all the relevant circumstances including evidence bearing on the relationships between the accountant and that person or any affiliate thereof.

(Sec. 10, 52 Stat. 826; 15 U.S.C. 717i) [37 FR 26006, Dec. 7, 1972]

159.4 Accounting for fees paid pursuant to this part.

AUTHORITY: Secs. 1(c), 3, 7, 16, 52 Stat. 822, 824, 830, 56 Stat. 83, 68 Stat. 36, sec. 501, 65 Stat. 290, sec. 5, 67 Stat. 464, 15 U.S.C. 717(c), 717b, 717f, 717g, 7170, 31 U.S.C. 483a, 43 U.S.C. 1334(c), E.O. 10485, 3 CFR, 1949-1953 Comp., p. 970.

§ 159.1 Filing fee to accompany application.

A filing fee of $50 shall accompany each of the following:

(a) Applications for exemption under section 1(c) of the Act;

(b) Applications to import or export natural gas under section 3 of the Act; (c) Applications for permits under Executive Order 10485;

(d) Applications and petitions to intervene in which applicant or petitioner is requesting an order under section 7(a) of the Act.

(e) Applications for permission and approval to abandon under section 7(b) of the Act;

(f) Applications for certificates of public convenience and necessity under sections 7 (c) and (e) of the Act.

(g) Applications for determinations by the Commission under section 5 of the Outer Continental Shelf Lands Act; and

(h) Amendments to any of the applications listed in paragraphs (a) through (g) of this paragraph and those referred to in § 159.3(c).

[Order 317, 31 FR 431, Jan. 13, 1966, as amended by Order 317-A, 31 FR 4890, Mar. 24, 1966]

§ 159.2 Applications involving construction or acquisition of facilities.

In addition to the fees prescribed by § 159.1, and except as provided in paragraph (e) of this section, applicants for a certificate of public convenience and necessity under section 7 (c) and (e) of the Act to construct and operate or acquire and operate facilities shall pay the following fees:

(a) Within 30 days following issuance of notice of application, an amount equal to sixty-five one-thousandths of 1 percent (0.00065) of the estimated cost of construction of new facilities or of facilities to be acquired;

(b) Within 30 days following grant of the certificate, an amount equal to one hundred and thirty one-thousandths of 1 percent (0.00130) of the estimated cost of construction of new facilities or of facilities to be acquired, unless applicant does not accept the certificate. (c) If an amendment to a pending application increases the total estimated cost of construction of new facilities or of facilities to be acquired, an additional amount, computed with respect to the increase as provided in paragraph (a) of this section, shall accompany the filing of the amendment.

(d) If the actual cost of construction of new facilities or of facilities to be acquired exceeds the estimated cost thereof, the statement of actual cost, required to be submitted by § 157.20(c)(4) and (d)(3) of this chapter, shall be accompanied by an amount equal to one-hundred and ninety-five one-thousandths of 1 percent (0.00195) of the excess of actual cost (plus estimated cost of facilities for which actual cost is not then recorded on the books of applicant) above estimated cost.

(e) No fee shall be required under tnis section where the estimated cost of the facilities to be constructed or acquired is less than $7,000.

[Order 317-A, 31 FR 4890, Mar. 24, 1966; as amended at Order 427, 36 FR 5598, Mar. 25, 19711

159.2a Annual charges.

Reasonable annual charges will be assessed by the Commission against natural gas companies to reimburse the United States for costs of administration of the Natural Gas Act, as hereinafter provided:

(a) A determination shall be made for each fiscal year of the costs of administration of the Commission's natural gas pipeline programs from which shall be deducted the amounts received during the same period pursuant to the provisions of §§ 159.1 and 159.2. The difference shall constitute the adjusted costs of administration of such programs for such period.

(1) The adjusted costs of administration determined under this paragraph (a) shall be assessed against each Class A and Class B natural gas company in the proportion that the total jurisdictional gas deliveries of such natural gas company in the calendar year terminating in such fiscal period bear to the sum of the jurisdictional gas deliveries of all Class A and Class B natural gas companies for the like period.

(b) In addition to the annual charges prescribed in paragraph (a) of this section, each natural gas company required to file an Annual Report-Total Gas Supply on FPC Form No. 15 shall be assessed one-tenth (10) of a mill for each Mcf of new reserves certificated during the year covered by said

report as shown for item 14 of such form.

(c) Annual charges assessed under this section shall be paid within 60 days of the rendition of a bill therefor by the Commission.

[Order 427, 36 FR 5598, Mar. 25, 1971]

§ 159.3 Miscellaneous.

(a) Method of payment. Annual assessments and fee payments shall be made by check or money order payable to the Treasurer of the United States. No fees will be refunded.

(b) Exemption. The provisions of this part shall not apply to independent producers as defined in § 154.91(a) of this chapter.

(c) Amendments to outstanding certificates. Excepting applications for extensions of time for which no fee will be required, applications to amend outstanding certificates, authorizations or orders, which have become final, will be treated as initial applications and the fees prescribed by this part will be charged.

(d) Temporary certificates. Applications for temporary certificates, filed pursuant to § 157.17 of this subchapter, and not a part of an initial certificate application, or to amend outstanding temporary certificates

will be treated as amendments to applications for the purposes of this part and a filing fee of $50 will be charged unless the request for temporary authority amends the original application to increase the estimated costs, in which case the provisions of § 159.2(c) will apply.

[Order 317, 31 FR 432, Jan. 13, 1966, as amended by Order 317-A, 31 FR 4890, Mar. 24, 1966; Order 427, 36 FR 5598, Mar. 25, 1971]

§ 159.4 Accounting for fees paid pursuant to this part.

A natural gas company subject to the provisions of this part shall account for the fees paid as follows:

(a) The fee for applications not involving the construction of facilities ($50.00 for each application or amendment thereto) shall be charged to Account 928, Regulatory commission expenses.

(b) The fee for applications involving construction of facilities shall be accounted for as follows:

(1) All amounts paid prior to final disposition of the application shall be charged to Account 186, Miscellaneous deferred debits: (i) If the certificate is granted and accepted, the amounts recorded in Account 186 shall be cleared to Account 107, Construction work in progress-Gas, and subsequently cleared to the appropriate plant accounts; (ii) if the certificate requested is not granted or is not accepted by the applicant, the fees recorded in Account 186 shall be cleared to Account 928, Regulatory commission expenses.

(2) All amounts paid after grant of the certificate application shall be recorded in Account 107, Construction work in progress-Gas, and subsequently cleared to the appropriate plant accounts.

(c) All amounts paid in connection with applications involving the acquisition of facilities shall be charged to Account 928, Regulatory commission expenses.

[Order 317, 31 FR 432, Jan. 13, 1966]

§ 160.1 Filing of company procurement policies and practices.

Not later than January 1, 1970, each natural gas pipeline company shall be required to reduce to writing, file with the Commission in triplicate and make available to any member of the public upon request a comprehensive statement of its procurement policies and procedures. Amendments thereto shall likewise be filed and made available to the public, upon specific request, within 30 days of their effective dates. Statements of Procurement Policies and Procedures shall include, but not be limited to, the following:

(a) The objectives of the company in its procurement function.

(b) Policies governing the choice of procurement method (sealed-bid formal advertising, competitive negotiation, noncompetitive contract awards,

etc.) with specific reference to the following categories:

(1) Equipment.

(2) Materials and supplies.

(3) Construction.

(4) Repair, maintenance and management services.

(5) Research and development.

(c) Extent and nature of public notice of proposed procurements, and of direct notice to prospective suppli

ers.

(d) The extent of the competition required. This should include any limitations to or preferences for suppliers in the utility service areas.

(e) The method of qualifying the suppliers.

(f) The policy adopted by the utility of putting names on their bidders list and also under what circumstances names would be removed from the bidders list.

(g) The company personnel that vendors should contact.

(h) Procedures governing the opening of sealed bids and proposals, negotiations with bidders or offerors, and criteria for contract award thereunder.

(i) Policies and procedures with respect to types of contracts (cost-plus, incentive type, fixed price, etc.).

(j) The circumstances under which negotiations are made without competition such as for emergencies, repair parts, accessory and supplemental equipment, matching existing equipment or architectural design.

(k) Any special procurement policies or restrictions such as those relating to regional, State or local suppliers, small business suppliers, procurement from corporate affiliates, and union or nonunion suppliers.

(1) Any "Buy American" policy that the company may adopt.

(m) Policies and procedures, if any, with respect to approval or control of subcontracts and subcontractors.

(n) Any applicable Federal and State laws and agreements with employee organizations which might affect the procurement policy.

(Secs. 304, 309, as amended, 49 Stat. 855, 858; 16 U.S.C. 825c, 825h; sec. 16, 52 Stat. 830; 15 U.S.C. 7170)

[Order 386, 34 FR 12826, Aug. 7, 1969]

PART 201-UNIFORM

SYSTEM OF ACCOUNTS PRESCRIBED FOR NATURAL GAS COMPANIES SUBJECT TO THE PROVISIONS OF THE NATURAL GAS ACT (CLASS A AND CLASS B)

AUTHORITY: Secs. 8(a), 10(a), 16, 52 Stat. 825, 826, 830; 15 U.S.C. 717g(a), 717i(a), 7170.

SOURCE: Order 219, 25 FR 5616, June 21, 1960, as amended by Order 276, 28 FR 14267, Dec. 25, 1963; Order 289, 29 FR 15021, Nov. 6, 1964; Order 289-A, 29 FR 18216, Dec. 23, 1964; 30 FR 484, Jan. 14, 1965; Order 320, 31 FR 5690, Apr. 13, 1966; Order 322, 31 FR 7898, June 3, 1966; Order 325, 31 FR 10605, Aug. 9, 1966; Order 366, 33 FR 10136, July 16, 1968; Order 371, 33 FR 15546, Oct. 19, 1968; Order 389, 34 FR 17436, Oct. 29, 1969; Order 389A, 35 FR 879, Jan. 22, 1970; Order 408, 35 FR 13987, Sept. 3, 1970; Order 410, 35 FR 15910, Oct. 9, 1970; Order 420-A, 36 FR 3962, March 3, 1971; Order 426, 36 FR 5044, March 17, 1971; Order 432, 36 FR 8241, May 1, 1971; Order 434, 36 FR 11432, June 12, 1971; Order 436, 36 FR 15529, Aug. 17, 1971; Order 439, 36 FR 20871, Oct. 30, 1971; Order 440, 36 FR 21964, Nov. 18, 1971; Order 441, 36 FR 21962, Nov. 18, 1971; Order 440-A, 37 FR 603, Jan. 14, 1972; Order 446, 37 FR 1165, Jan. 26, 1972; Order 460, 37 FR 24660, Nov. 18, 1972; Order 465, 38 FR 1388, Jan. 12, 1973; Order 466, 38 FR 1585, Jan. 16, 1973; Order 467-A, 38 FR 2172, Jan. 22, 1973; Order 469, 38 FR 4248, Feb. 12, 1973; Order 473, 38 FR 4950, Feb. 23, 1973; Order 477, 38 FR 7215, Mar. 19, 1973; Order 483, 38 FR 12117, May 9, 1973; Order 486, 38 FR 18874, July 16, 1973; Order 490, 38 FR. 23334, Aug. 29, 1973; Order 486-1, 38 FR 30435, Nov. 5, 1973; Order 499, 39 FR 1265, Jan. 7, 1974; Order 473, 39 FR 2469, Jan. 22, 1974; Order 504, 39 FR 6083, Feb. 19, 1974; Order 505, 39 FR 6100, Feb. 19, 1974; Order 469, 39 FR 8917, Mar. 7, 1974; Order 499, 39 FR 9651, Mar. 13, 1974; Order 505, 39 FR 22418, June 24, 1974; Order 529, 40 FR 26508, June 24, 1975; Order 530, 40 FR 26987, June 26, 1975; Order 549, 41 FR 24996, June 22, 1976; Order 561, 42 FR 9164, Feb. 15, 1977; Order 566, 42 FR 30159, June 13, 1977; Order 567, 42 FR 30615, June 16, 1977]

NOTE: Order 141, 12 FR 8504, Dec. 19, 1947, provides in part as follows: Prescribing a system of accounts for natural gas companies under the Natural Gas Act. The Federal Power Commission acting pursuant to authority granted by the Natural Gas Act (58)

Stat. 821, as amended; 15 U.S.C. and Sup. 717 et seq.), particularly sections 8(a), 10(a) and 16 thereof, and finding such action necessary and appropriate for carrying out the provisions of said act, ordered that:

(a) The accompanying system of accounts, entitled "Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act," and the rules and regulations contained therein, be adopted;

(b) Said system of accounts and said rules and regulations contained therein be and the same are hereby prescribed and promulgated as the system of accounts and rules and regulations of the Commission to be kept and observed by natural gas companies subject to the jurisdiction of the Commission, to the extent and in the manner set forth therein;

(c) Said system of accounts and rules and regulations therein contained as to all natural gas companies now subject to the jurisdiction of the Commission, became effective on January 1, 1940, and as to any natural gas company which may hereafter become subject to the jurisdiction of the Commission, they shall become effective as of the date when such natural gas company becomes subject to the jurisdiction of the Commission.

UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR NATURAL GAS COMPANIES SUBJECT TO THE PROVISIONS OF THE NATURAL GAS ACT (CLASS A AND CLASS B)

Definitions

When used in this system of accounts:

1. "Accounts" means the accounts prescribed in this system of accounts.

2. "Actually issued," as applied to securities issued or assumed by the utility, means those which have been sold to bona fide purchasers for a valuable consideration, those issued as dividends on stock, and those which have been issued in accordance with contractual requirements direct to trustees of sinking funds.

3. “Actually outstanding," as applied to securities issued or assumed by the utility, means those which have been actually issued and are neither retired nor held by or for the utility; pro